Satisfying Contract Clauses

Fixture and Chattel Clause

One of the contract clauses that can cause much grief is the fixture and chattel clauses. Here is how to make things smooth before you run into problems when for sale by owner.

As with many problems concerning a real estate contract, an ounce of prevention is worth a pound of cure. The best way to "fix" many problems, is to remove the issue before the clause is even written.

The main issues that arise with the fixtures and chattels contract clauses, is simply a misunderstanding between the parties involved.

The first lesson is to never assume that the other party "knows" or "should know" that a certain item is not included in the purchase price.

Lets take it step by step on how to eliminate the

fixtures and chattels problem, in most cases.

Step #1

The first thing to do before you even place your property up for sale, is to remove, or replace, any items that you want to keep when you sell your house.

Examples:

Problem: A special dining room chandelier that has been in the family for 3 generations.

Solution: Remove the item and wrap up carefully. Replace with a suitable fixture.

Issue: A front door knocker with your name engraved.

Solution: Take down the door knocker and replace with suitable replacement. Try to replace with one of the same size or slightly larger so everything blends in nicely.

Item: Central vacuum canister.

Solution: Take canister and tools to a friend or relative's place. Why? Because if you leave it attached, you are going to say good-bye to that central vacuum canister 9 times out of 10. Been there done that many a time.

Item: Special corner knick knack shelf that your son made as a birthday gift when he was 12.

Solution: Detach, store, patch any holes and repaint area. Make sure you feather in the paint so it doesn't look like two different paint colors. If wallpaper this might be a bit more difficult.

Step #2

Make a list of any items that you will be taking with you that you don't want to remove, before the closing date. You then want to put these items on your feature sheets and contract clauses as exclusions.

Examples:

Fixture: A special rose bush that was a gift from a dear friend.

Solution: Put on the feature sheet that item is not included. Make sure this item is also written on purchase and sales contract.

Fixture: A big screen television wall mounting bracket.

Solution: Put item on feature sheet as an exclusion. Make note on feature sheet and purchase and sales contract that the item will be removed and wall will be repaired in a workmanlike manner before closing.

Step #3

Walk through your house and outside house with pen and notepad.

Make a list of all items that may come into question, whether they are included or not included, in the purchase price.

You don't have to go "silly" on this list. Just look for gray areas. You don't have to write down the lawnmower or the furnace! The lawnmower is a chattel and the furnace is a fixture.

If you want a refresher or a peek at the difference between a fixture and a chattel, you can go From Contract Clauses to Chattel or Fixture?

Once you have your list, you may want another family member or a friend to do another look.

Some of the most common items that cause problems from my own experience, are as follows:

• Range hoods.
• Central vacuums and attachments.
• Curtain and drapery hardware.
• Window coverings.
• Fireplace screens and utensils.
• Pool accessories
• Corner knick knack shelves, or bar glass cabinets etc. These are items that are in many cases personal, yet they are attached to the wall as a fixture. Legally they are part of the property and belong to the buyer. Avoid the problem and remove before they become an issue later. OK?
• Shelving units in a garage or a tool shed. If attached to the wall, they are fixtures. If free standing they are a chattel. Avoid confusion, state whether they are included or not included with the purchase. Use on feature sheets and fixture/chattel contract clauses.
• Mail boxes
• Door knockers or name plates attached to the house. Remove and/or remove and replace before selling.
• "Special" plants, shrubs, buses and trees.

Don't be a Grinch!

Final word on contract clauses concerning chattels and fixtures. PLEASE, don't be a Grinch. Once you have replaced any items that you will be taking with you, don't try to change anything else before closing.

"I would never do that Doug!" Well of course YOU wouldn't. ;-) But others have. The pre-closing inspection day arrives and as the buyer is doing the final walk-through, they tilt their head to one side and that strange look comes over their face.

"I don't remember that light fixture". "The one I remember was much nicer!" Duh! Back to the drawing board and the big messy "he said, she said".

This "changing of the guard" also includes extras such as appliances. As a Realtor®, I always wrote down the serial numbers of any appliances included in the purchase price on the purchase and sales contract.

This information was included right in the fixture and chattel contract clauses. You as a seller, or when you purchase your next home, would be wise to do the same thing.

If you have the serial numbers, there is a very short time span before the actual items you purchased are returned. Without the serial numbers inserted in the contract clauses, there could be some heated discussions.

Believe it or not, I have actually run across people that actually lie! Isn't that something!? :)

For More Information about Satisfying Clauses

Escape Clauses

Subject to Financing Clauses

Subject to Parent Approval Clauses

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